According to Seamus Rocca, the CEO of Gibraltar -based private banks, Seamus Rocca, Bitcoin holders are getting more relaxed as they have grown market confidence.
In an interview held at the TOKEN2049 event in Dubai, ROCCA said that the BTC (Bitcoin) began to begin to adopt a BTC (Bitcoin) in Cointelewraph, and the atmosphere between investors changed from short -term speculation to a longer -term view.
ROCCA told Cointelegraph, “I’m not sure that I was confident 3-4 years ago.” But today people are more comfortable to loan to Bitcoin because they are not nearing the level of liquidation.
On March 18, XAPO BANK started a loan product that allows users to borrow US dollars using Bitcoin as collateral. With this product, qualified customers can access loans of up to $ 1 million while maintaining BTC.
Bitcoin support loans are the next step
ROCCA said that the demand for products occurred as the trust in Crypto’s long -term trajectory increased in Cointelewraph. This was led by the development of signing a wide range of institutional adoption.
ROCCA said, “The atmosphere of institutional space, ETF and Bitcoin is expected to adopt a wider adoption and long -term accidents than very short -term speculations.
He said that this change is the key to unlocking the demand for borrowing for BTCs because investors feel more safer and have less likely to fall prices.
XAPO BANK CEO said that Bitcoin support loans offer 20%, 30%, and 40%of loan-value (LTV) ratios to provide flexibility while managing risks. ROCCA said, “If you get a 20% LTV loan and have 100 Bitcoin, it’s $ 2 million you can rent it without selling it like many early adapters.
If you use conservative LTV levels, like 20%, Bitcoin must fall less than $ 40,000 for borrowers to be liquidated. ROCCA pointed out the current price stability as a reason to increase the trust of the borrower to COINTELEGRAPH, saying, “We are not nearly $ 40,000.
relevant: Blockchain for institutions, lawyers hesitant: Doublezero CEO
Borrowing helps investors avoid selling in emergencies.
ROCCA said Bitcoin support loans provide solutions to holders who want to be exposed to BTC when they face unexpected expenses. ROCCA said, “If you follow the spirit of investment, the wise will not be sold within three days if it is $ 100,000.
Loca added. He said unexpected costs such as medical expenses or automotive replacement in Cointelewraph are often forced to clear their assets in an unfavorable time. ROCCA said that instead of selling Bitcoin at $ 10,000, investors can simply borrow interest on loans and loan them to their shares.
“You have continued to rise because they have not continued to sell the price of the price for Bitcoin.” “But you get liquidity for what you need in everyday life.”
The XAPO BANK EXECECE says that as the adoption of institutions intensifies and the Bitcoin market matures, more long -term holders are ready to use encryption liquidity without selling BTC. This represents a transition from the “HODL” culture for the Bitcoin owner to work more with assets.
https://www.youtube.com/watch?v=VKC5QCRVDC0
magazine: Tension with 12 minutes of nails when Ethereum’s PECTRA WORK goes live live